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Forex - AUD/USD weekly outlook: August 22 - 26

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Forexpros - Last week saw the Australian dollar rebound from a one-week low against its U.S. counterpart on Friday, as rising raw material prices supported demand for commodity-linked currencies, however mounting concerns over the global economic outlook limited gains.

AUD/USD hit 1.0601 on Wednesday, the highest since August 4; the pair subsequently consolidated at 1.0405 by close of trade on Friday, edging up 0.39%, the first weekly gain in three weeks.

The pair was likely to find short-term support at 1.0244, the low of August 12 and resistance at 1.0601, Wednesday's high.

The Aussie rebounded from a one-week low on Friday after gold and copper prices advanced on the New York Mercantile Exchange, boosting the outlook for the nation's commodity exports.

On Thursday, the Aussie came under pressure after a flurry of weak U.S. data fuelled speculation the U.S. economic recovery was stalling.

Among the disappointing U.S. economic reports was data on existing home sales and weekly jobless claims, which both came in below market expectations, while an index of manufacturing activity in the Philadelphia-region plunged to the lowest level since March 2009 in August.

The Aussie was boosted on Wednesday, hitting the highest level since August 4, after reports that the European Central Bank was buying Spanish and Italian government bonds saw risk appetite firm.

Meanwhile, minutes from the Reserve Bank of Australia's August policy-setting meeting published on Tuesday said that recent turmoil in financial markets could slow global economic growth, in turn dampening the inflation outlook and easing pressure on the central bank to raise rates.

Looking ahead, investors will be focusing on whether Federal Reserve Chairman Ben Bernanke will drop any hints about such further monetary easing measures when he speaks at an economic symposium in Jackson Hole, Wyoming, on Friday.

Ahead of the coming week, Forex Pros has compiled a list of these and other significant events likely to affect the markets.

Monday, August 22

The U.S. is to publish data on mortgage delinquencies, a sign of health in the housing market.

Tuesday, August 23

The U.S. is to release official data on new home sales, a leading indicator of economic health.

Wednesday, August 24

Australia is to publish an index of leading economic indicators, designed to predict the future direction of the economy, as well a data on completed construction projects, an important gauge of the construction industry.

Later in the day, the U.S. is to publish government data on durable goods orders, a leading indicator of production. The country is also to publish data on crude oil inventories.

Thursday, August 25

The U.S. is to publish government data on initial jobless claims, a leading indicator of economic health.

Thursday is also the first day of the annual global economic symposium in Jackson Hole, Wyoming.

Friday, August 26

RBA Governor Glenn Stevens is due to testify before the House of Representatives Standing Committee on Economics, in Melbourne. His comments will be closely watched for any clues to the future direction of monetary policy.

Later in the day, the U.S. is to publish preliminary data on GDP, a leading indicator of economic growth, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.

Also Friday, Fed Chair Ben Bernanke is to speak at the second day of the economic symposium in Jackson Hole.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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